Aurora Cannabis Inc. (TSX:ACB) says it has purchased 450,000 common shares of CanniMed Therapeutics Inc. (TSX:CMED), equivalent to about 1.8 per cent of the company.
Vancouver-headquartered Aurora said it’s allowed to buy up to about five per cent of the Saskatoon-headquartered company’s stock on the open market and this is its first purchase.
An acrimonious takeover battle between the two marijuana companies was in the regulatory spotlight earlier in the month at a joint hearing involving the Saskatchewan and Ontario securities commissions.
Both have said they are pleased with a regulatory ruling – dated Dec. 22 but released Wednesday – that gives each of them some of what they were seeking.
Any securities issued by CanniMed as a defence against a hostile takeover by Aurora will be cease-traded, the Ontario Securities Commission (OSC) said Wednesday.
The OSC said Aurora, for its part, will be required to amend its takeover bid circular and related press releases to include certain information that could affect CanniMed’s shareholders when they decide to accept or reject the offer.